Tata group to buy 68 percent stake in Big Basket at a cost of around Rs 9500 crore

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Posted on 17-02-2021 by Admin

Tata group to buy 68 percent stake in Big Basket at a cost of around Rs 9500 crore

 Tata Group will buy 68% stake in online grocery venture BigBasket at a cost of around Rs 9,500 crore. According to media reports, this stake of Tata will be converted into BigBasket s enterprise value of Rs 13,500 crore. The Tata group plans to launch a super app for online business, which will add a large range of BigBasket household goods and grocery products. This will give Tata a larger user base.

Reliance Jio Mart will get a challenge

Due to the epidemic, there has been a significant jump in online sales of grocery across the country. Tata s strategy is to strengthen itself in India s e-commerce market. This will give competition to other leading e-commerce companies including Reliance and Amazon, as the Tata group will provide consumer friendly services including financial, groceries through Super Apps.

Alibaba s major stake in BigBasket

China s retail company Alibaba holds 29% stake in BigBasket, which it intends to sell. Other big investors in BigBasket include Abraaj Group (16.3%), Accent Capital (8.6%), Helion Venture Partners (7%), Bessemer Venture Partners (6.2%), Mirai Esset Navar Asia (5%), International Finance Corporation (4.1 %), Sands Capital (4%) and CDC Group (3.5%).

BigBasket business spread across 26 cities

BigBasket is one of India s largest online food and grocery selling platforms. About 40 thousand products from one thousand companies are available on the platform. The BigBasket app is used by 6 million customers. The company s business is spread across 26 cities of the country. According to the report, one and a half million orders are received daily on BigBasket.

The Bangalore-based company Big Basket is competing with Flipkart and Amazon s Fresh , owned by Walmart Inc. In the era of the epidemic, people are preferring to do most shopping online while staying indoors.

According to media reports, the Tata group is set to launch a "super app" that will bring together all of its consumer businesses. The group is set to compete with companies like Amazon and Reliance in the fast-growing e-commerce sector in India.

Tata Group and Big Basket Deal also include making the company public. That is, BigBasket can launch IPO by 2022-23. Recently, the company s CEO Hari Menon also mentioned the IPO. But not much information was given on this. The founders of BigBasket include Hari Menon as well as Vipul Parekh, Abhinay Chaudhary, Ramesh VS and VS Sudhakar. His stake in the company is more than 5%

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